Kathmandu: The Asian Development Bank (ADB) has agreed to provide a loan of 165 million USD to the Government of Nepal. Two separate loan agreements were signed between the Government of Nepal and ADB at a program organized at the Ministry of Finance on Monday. The loans will be directed towards the modernization of drinking water, sewage management, and customs administration.
According to National News Agency Nepal, the agreement was signed in the presence of Finance Minister Dr. Swarnim Wagle and ADB President Masato Kanda. Finance Secretary Dr. Ghanashyam Upadhyay signed the agreement on behalf of the Government of Nepal, while ADB Country Director for Nepal, Arnaud Cauchois, signed it on behalf of ADB.
The agreement specifies that a concessional loan of 115 million USD will be mobilized for the Integrated Water Supply and Sewerage Management (Sector) Project, along with a 50 million USD policy-based loan for the modernization of customs administration, boosting trade, and supporting job creation. The concessional loan aims to improve resilient water supply and sanitation services and strengthen institutional capacities in rapidly expanding municipalities across Nepal. The project is anticipated to directly benefit more than 850,000 people in 13 municipalities.
Additionally, the policy-based loan supports subprogram 2 of the South Asia Subregional Economic Cooperation Customs and Logistics Reforms Program. This initiative builds on prior efforts to enhance customs processes and develop the logistics sector within the country.
On this occasion, Finance Minister Dr. Wagle expressed his appreciation for ADB’s support towards Nepal’s sustainable development and conveyed his confidence in the further strengthening of this partnership. ADB President Kanda reiterated the bank’s commitment to facing internal and external economic challenges, continuing its six-decade-long cooperation with Nepal.